California pending home sales rise in January

LOS ANGELES (Feb. 23) – The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today debuted its Pending Home Sales Index and released key distressed property data.

Pending home sales index:

Pending home sales in California increased in January, according to C.A.R.’s Pending Home Sales Index (PHSI)*.  The index was 93.6 in January, rising 13.6 percent from December’s index of 82.4, based on contracts signed in January.  Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.
“Pending sales typically rise in January from a seasonally slow November and December,” said C.A.R. President Beth L. Peerce.  “January’s pending sales should be reflected in higher existing sales activity in February and March and serve as a precursor to the spring home buying season.”

Distressed housing market data:

• The total share of all distressed property types sold statewide in January was 54 percent, up from 50 percent in December, but down from 56 percent in January 2010.
  
• Conventional sales made up the remaining share at 46 percent in January, down from 50 percent in December, but up from 44 percent in January 2010.
  
• Of the distressed properties sold statewide, the total share of REO (real estate-owned) sales was 32 percent in January, up from 30 percent in December, but was down from 37 percent in January 2010.
  
• The statewide share of short sales increased to 22 percent in January, up from 20 percent in December and up from 19 percent in January 2010.
  
• The median price of homes sold in the state differed dramatically depending on the property type, with non-distressed properties selling for much higher prices than short sales and foreclosures.
  
• The statewide median price of conventional properties sold in January was $367,150, 38 percent higher than the short sale median price of $265,500 recorded in January, and 85 percent higher than the January REO median price of $198,000.

Share of Distressed Sales to Total Sales

Type of Sale	Jan-10	Dec-10	Jan-11
REOs (real estate-owned)	37%	30%	32%
Short Sales	19%	20%	22%
Total Distressed Sales	56%	50%	54%

Distressed Sales by Select Counties
(Percent of total sales)

County/Region	Jan-10	Dec-10	Jan-11
CA	56%	50%	54%
San Diego	34%	28%	33%
Marin	37%	34%	43%
Orange	41%	38%	43%
San Luis Obispo	49%	46%	47%
Los Angeles	54%	50%	54%
Mendocino	49%	57%	55%
Napa	68%	54%	59%
Sonoma	54%	55%	61%
Kern	69%	71%	70%
Sacramento	68%	66%	73%
Riverside	78%	67%	73%
San Bernardino	76%	72%	74%
Solano	76%	74%	81%

Local Events: Venice Art Crawl

If you are looking for something to do with family and friends or you enjoy art check out the Venice Art Crawl.

The Venice Art Crawl is a free monthly exploration of the Venice Beach area and the world famous Venice artist community and spirit. During the long history of the Venice Boardwalk area it has served as a home for artists, a haven of creativity, and the place to find many famous galleries. The Art Crawl is an event to help local artists show their art. In recent years areas such as Downtown, Culver City and Silverlake, in an effort to assist spurring local economy have started their own Art Walks.

The Venice Art Crawl takes place every third Thursday of the month.

Next Event: March 17th


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2010 - Million Dollar Homes Sales Rise for the First Time Since 2005

Despite a decline in California home sales last year, the number of homes sold in the Golden State for $1 million or more in 2010 rose for the first time since 2005, according to a study from San Diego-based DataQuick Information Systems.


The research firm notes that California experienced a 9 percent year-over-year drop in total home sales in 2010, including all price levels.

Million-dollar sales peaked in 2005 at 54,773 and then declined each year through 2009. In 2010, 22,529 homes sold for $1 million or more in California, a 21 percent increase from 18,621 in 2009.

DataQuick says about one in 20 homes sold for a million dollars in 2010. It was one in 25 in 2009 and one in 16 in 2008.

“Prestige home buyers respond to a different set of motivations than the rest of us,” said John Walsh, DataQuick president. “Their decisions are less dependent on jobs, prices, and interest rates and more on how theirportfolio is doing. When the financial world was full of uncertainty a couple of years back and the jumbo loan market dried up, luxury sales plummeted.”

Walsh continued, “As the economy started its top down recovery, some wealthy buyers went looking for a bargain. Additionally, there has always been a safe-haven component in the million-dollar market that attracts wealth.”

The vast majority of California’s million-dollar-plus home sales last year were in San Marino in Los Angeles County, Los Altos in Santa Clara County, Atherton and Hillsborough in San Mateo County, and Rancho Santa Fe in San Diego County.

According to DataQuick’s report, statewide 463 homes sold for more than $5 million last year, 304 were in the $4 million to $5 million range, 782 were in the $3 million to $4 million range, 2,333 were in the $2 million to $3 million range, and the rest-nearly 79 percent-sold for between $1 million and $2 million.

Based on public records, the most expensive confirmed purchase in 2010 sold for $50 million. The Bel Air residence was the state’s largest million-dollar home sold last year at 35,378 square feet with 15 bedrooms and 7 bathrooms on about 2.2 acres.

Newly built homes accounted for 5.9 percent of last year’s $1 million-plus sales, down from 6.5 percent in 2009. Condo sales made up 8 percent of the million-dollar category last year, down from 8.3 percent the year before.

DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies, and industry analysts.

Source:DSNews

Luxury Development Opens in Western Malibu

A luxury planned community has opened at the western end of Malibu and listed its beachfront showcase home at $17 million.

Called MariSol Malibu, the gated community will contain 17 properties on 80 acres. The 13 oceanfront estate sites have beach frontage ranging from 130 to 210 feet.

The showcase estate, sited on an acre, has 6,800 square feet of living space containing a 60-foot-wide great room with 14-foot ceilings, two bars, a refrigerated wine cellar, a gym, two master bedroom suites, two additional bedrooms and six bathrooms. Outdoors is an additional 3,000 square feet of sheltered courtyard space. There is parking for 10 cars.

For additional information, please contact Susan Allen, Agent at Susan Allen & Associates 310.704.0815 or susan@susanallen.com

Bank of America Establishes New Unit to Handle Defaulted Loans

Bank of America announced Friday that it has set up a new operational division to deal with problem loans and resolve investors’ mortgage repurchase claims. 

The newly formed unit, which the company has labeled Legacy Asset Servicing, will service all defaulted loans and discontinued residential mortgage products. It will be led by Terry Laughlin.

Laughlin will oversee the bank’s mortgage modification and foreclosure programs, in addition to his existing duties of resolving residential mortgage representation and warranties repurchase claims. 

In addition, Laughlin is charged with leading BofA’s borrower outreach program to include more than 400 housing rescue fairs in 2011, building additional homeowner assistance centers in communities across the country, and expanding partnerships with nonprofits.

The decision to establish a new, separate division to handle the company’s problem loans came out of the North Carolina bank’s very recent, and very public, robo-signing quandary, which prompted reviews of hundreds of thousands of case files and a nationwide suspension of all Bank of America foreclosures and REO sales. 

The bank said in a statement that the issues that came to light in September and October of last year led the company to initiate a “self-assessment of default servicing.”

“While the review of the foreclosure process found that the underlying grounds for foreclosure decisions has been accurate, Bank of America implemented a series of improvements – including staffing, customer impact, and quality controls,” the company said. 

Barbara Desoer, Bank of America Home Loans president, will continue to oversee the servicing of the company’s more than 12 million mortgage customers who remain current on their accounts, as well as the mortgage origination side of the business. 

“This alignment allows two strong executives and their teams to continue to lead the strongest home loans business in the industry, while providing greater focus on resolving legacy mortgage issues,” said Brian Moynihan, BofA’s president and CEO. “We believe this will best serve customers – both those seeking homeownership and those who face mortgage challenges – as well as our shareholders and the communities we serve.”

Bank of America also said Friday that it is exiting the reverse mortgage origination business, citing “competing demands and priorities that require investments and resources be focused on other key areas of our business.”

Bank of America Home Loans will continue to serve the needs of existing reverse mortgage customers and those with loans in process.

Source: DSNEWS

How to Obtain Your Certificate of Eligibility

I often get asked how one can obtain a Certificate of Eligibility, so I decided to ask an expert and share the information with you. Kevin Pearia blogs for VA Mortgage Center.com, the nation’s leading VA-dedicated lender.  In 2010 alone, VAMC helped secure over $1 Billion in VA financing for military members and their families.

VA home loans offer veterans and active duty service members a great opportunity to purchase for zero money down.  Not only can eligible military members benefit from not having to pay a down payment, but they also benefit from competitive interest rates and flexible loan terms.  Eligibility requirements for a VA loan are relatively lax, however, military members interested in securing a VA loan to finance the purchase of their home, will be required to submit a Certificate of Eligibility.

What is a Certificate of Eligibility?
A Certificate of Eligibility is a form given by the Veteran’s Administration office which states whether or not a service member is eligible for a VA Home Loan.  Military members who are able to receive a COE generally meet the following guidelines:
•    Have served at least 3 months on active duty during war time or served 181 days on active duty during a time without conflict
•    Have served 6 years in the military Reserves or National Guard

How Do I Obtain my COE?
Potential borrowers have two ways they can receive their Certificate of Eligibility: either they can let the lender get it for them or do so themselves.  Lenders are able to obtain COEs through Automated Certificates of Eligibility, an online system otherwise known as ACE which only lenders have access to.  With this program, lenders are able to access COEs in a matter of minutes only using the service member’s name a social security number.  However, those interested in allowing a lender to find their COE should note that the program works best for those who:
•    Are first-time VA Home Loan users
•    Were discharged after 1980
•    Served for at least 2 years on active duty

ACE will not certify a military member who is a part of the Reserves or National Guard, with a previous VA foreclosure, or with out the necessary time of service, as well as surviving spouses.  These individuals may have to obtain a Certificate of Eligibility themselves, and the process is a little more time consuming.  To receive a Certificate of Eligibility manually, military members must complete VA Form 26-1880 and submit it in one of the following ways:
∑    Online:  To fill out and submit VA Form 26-1880, prospective borrowers need to visit the Veterans Information Portal.  There they will find easy to follow guidelines for filling out the form.
∑    By Mail:  Surviving spouses may only submit a request for a COE by mail, and must submit VA Form 26-1817 to do so.  Military members must still submit VA Form 26-1880.  Both types of forms must be mailed to the VA Winston-Salem Eligibility Office.

A VA Home Loan is one of the most innovative lending programs on the market when it comes to helping military members achieve homeownership.  Borrowers will reap many benefits, and will be able to purchase the home of their dreams with little out-of-pocket expense.  All they need to do is to call a VA Loan Specialist and secure their Certificate of Eligibility, and they will be on the right track to becoming a home owner.

More Jobs Equals More Sales

It’s no secret that job growth would benefit real estate and the overall economy. Job creation expects to be a major topic of tonight’s State of the Union address by President Obama.

The National Association for Business Economics (NABE), however, is already reporting an improved hiring outlook for the next six months.

Some 42% of companies surveyed expect to hire more workers in the first half of 2011. That’s a serious increase over last year at this time, when only 29% planned to hire. Another 51% expect no change in hiring which, in these times, is not exactly bad news. At least these firms don’t plan on cutting anyone (which is what the remaining 7% in this survey said).

Consumer confidence is also improving. The Consumer Confidence Index for January rose to the highest level in eight months. While the January rating is still nearly 30 points below what is considered a normal or healthy consumer mindset, it does appear our nation is taking baby steps in a more positive direction.

And with such improvements will come a greater sense of job security and an increased likelihood that people will want to buy or invest in real estate.

Source: Short Sale Daily News 

For additional information, please contact Susan Allen, Agent at Susan Allen & Associates 310.704.0815 or susan@susanallen.com